Immersion Hands Over $20 Million to Microsoft in Rumble Controller Settlement

All that experience in court looks to be paying off for Microsoft. After all, how else could you explain receiving $20.75 million from the very company whose patents you're using. Confused? Let's backtrack.

In 2002, Immersion took exception to the rumble effects in Microsoft's controllers for the Xbox and sued the Redmond giant for patent infringement. Microsoft ultimately settled with Immersion, agreeing to pay $26 million to end the litigation, but not without a clause. Before agreeing to pay the sum, Microsoft stipulated that if Sony should ever license Immersions force feedback technology for it's PS3 controllers, Immersion would have to pay a portion of the settlement.

Immersion did end up settling with Sony last year, and that's good news for Microsoft. It took some legal wrangling to get it done, but Immersion has finally agreed to pay Microsoft and make good on the clause.

"We are pleased to have reached a resolution to our legal dispute with Immersion that includes a $20.75 million payment to Microsoft," said Steve Aeschbacher, associate general counsel for Microsoft. "We are gratified that we have successfully resolved our claims under the 2003 settlement we negotiated with Immersion, which provided benefits to both companies and specific rights to Microsoft."

And Microsoft has every reason to be pleased. Legal costs aside, the payment whittles down the company's initial $26 licensing settlement to just over $5 million.

Comments

Well when MS got the agreement did they also get a license for the rumble effects or did they get part ownership of the patent?

Really kind of sucks when you think about it. I go out and invent something and I patent it. I market it and sell it and make a legitament living off of it. Along comes Microsoft and copies my product and adds it to one of their products and markets it without so much as asking me if they can make a product based off my designs. My patent.

I would have to be on drugs to give Microsoft or anyone else more than a license to use my patent for a price. I would have to be on drugs and alcohal to give anyone part ownership of my patent.

What the hell kind of document did they sign? Were they freaking high?